Tariffs stay: China raises levies to 125% on US as Trump commerce battle escalates
China increased its tariffs on US imports to 125 per cent raising the stakes in a trade war that threatens to up-end global supply chains.
The hike, hitting back against Donald Trump’s decision to hike duties on Chinese goods to 145 per cent, will come into effect on Saturday.
Reacting to the news, the US dollar index fell 1.2 per cent to 99.50, marking its lowest level since April 2022.
As quoted by state broadcaster CCTV, Chinese President Xi Jinping said: “There are no winners in a trade war, and going against the world will only lead to self-isolation.”
He added: “For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression.”
China’s mission to the World Trade Organisation said it had filed an additional complaint to the trade body over US tariffs.
It came as the FTSE 100 opened 0.76 per cent higher in early trading on Friday, easing any worries that the London Stock Exchange would follow last night’s S&P 500 into the red.
President Xi ‘not afraid of unjust suppression’ as trade war escalates
As quoted by state broadcaster CCTV, Chinese President Xi Jinping said: “There are no winners in a trade war, and going against the world will only lead to self-isolation.”
He added, “For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression.
“Regardless of how the external environment changes, China will remain confident, stay focused, and concentrate on managing its own affairs well.”
Keir Starmer admits he has not spoken to Donald Trump since tariffs were unveiled
China files complaint to WTO over Trump’s tariffs
China’s mission to the World Trade Organization said on Friday it had filed an additional complaint to the trade body over US tariffs.
“On 10 April, the United States issued the Executive Order, announcing a further increase of the so-called ‘reciprocal tariff’ on Chinese products.
“China filed a WTO complaint against the United States’ latest tariff measures,” the statement from China’s mission said, citing a ministry of commerce spokesperson.
It came as Beijing increased its tariffs on US imports to 125 per cent.
‘Developing countries worst hit by tariffs’
“Reciprocal tariffs” and countermeasures could have a catastrophic impact, even worse than foreign aid cuts, on developing countries, the director of the United Nation’s trade agency said on Friday.
Global trade could shrink by 3-7% and global GDP by 0.7%, with developing countries the worst affected, the International Trade Centre said.
China hits back to increase tariffs on US goods to 125 per cent up from 84 per cent
Beijing on Friday increased its tariffs on US imports to 125 per cent, hitting back against Donald Trump’s decision to hike duties on Chinese goods to 145 per cent, raising the stakes in a trade war that threatens to up-end global supply chains.
The hike will come into effect on Saturday.
“The US imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion,” China’s Finance Ministry said in a statement
German finance minister: EU is ready to respond if trade talks with U.S. unsuccessful
The European Union will be ready to respond to tariffs if negotiations with the United States do not work, German Finance Minister Joerg Kukies said on Friday.
“The US side has to be aware that if negotiations do not work, then we will have another discussion around response mechanisms,” Kukies said in Warsaw ahead of a meeting of EU finance ministers.
Kukies also warned that Donald Trump’s decision to pause trade tariffs for dozens of countries for 90 days may add to uncertainty and keep markets and company executives on edge.
“What remains is the uncertainty, which no CEO likes,” the outgoing finance minister said in an interview in German newspaper Handelsblatt’s Friday edition.
“It potentially increases uncertainty even more. After all, there could be further escalation after 90 days,” he added.
Nigel Farage compares Donald Trump to Liz Truss
Reform UK leader Nigel Farage has compared good friend Donald Trump’s trade war to Liz Truss’s disastrous 49-day stint as prime minister.
“Do you know what, I think Trump did too much too soon, rather like Liz Truss did a couple of years ago,” he told LBC.
“I’ve never in my life before seen stock markets fall quickly and bond markets fall at the same time.
“As for the slugging it out with China, who’s going to win? Right now? I just don’t know.”
European market shows green shoots of recovery after Trump pauses tariffs
In Europe, both the CAC 40 in Paris and the DAX in Frankfurt are up too, around 0.6 per cent each, while Hong Kong’s Hang Seng is set to close shortly as remains up 1.5 per cent.
The latter was hard-hit at the start of the tariff worries, mind, so remains down eight per cent across the week and 11 per cent over a month.
On the Euro STOXX 50 this morning, the biggest riser is Dutch chipmaker ASML, showing a 2.7per cent change to the green as we head toward the weekend.
Spain’s PM visits China to boost ties amid tariff chaos
Spain’s Prime Minister Pedro Sanchez is visiting China on Friday, as his government seeks to boost investment from the Asian giant amid global economic uncertainty caused by a chaotic US tariff policy.
Mr Sanchez met with Chinese President Xi Jinping and was also expected to meet with business leaders from several Chinese companies, many of which produce electric batteries or renewable energy technologies.
“A trade war favours no one. We all will lose,” Mr Sanchez said after meeting with Vietnamese leaders in Hanoi before his trip.
Spain’s government spokeswoman Pilar Alegria said earlier this week that Mr Sanchez’s trip “has special importance” and is an opportunity to “diversify markets” – Spain could see as much as 80% of its exports to the US impacted by Trump’s tariffs.
The FTSE 100 has started firmly in the green
The FTSE 100 has opened 0.76 per cent up in early trading, easing any worries that it would follow last night’s S&P 500 into the red.
The US-based sell-off served ass a reminder that all is not fixed in terms of the tariffs and global trade, but it’s a fairly calm picture on the London Stock Exchange today so far with just nine companies in negative territory.
Mining is a strong early sector with each of Glencore, Endeavour and Fresnillo showing gains of more than two per cent – the latter almost double that number – and financials are generally strong across the board too.
